Annual Report 2017

Hydro-Québec posted net income of $2,846 million in 2017. This strong result is mainly due to net electricity
exports of more than 34 TWh—a record volume in the company’s history.

Moreover, under the earnings-sharing mechanism implemented in 2017, Hydro-Québec TransÉnergie and Hydro-Québec
Distribution now share with customers any surplus over and above the rate of return authorized by the Régie
de l’énergie for a given year. An amount of $45 million was therefore recognized in this regard
in 2017.

For a fifth consecutive year, Hydro-Québec’s contribution to the revenue of its sole shareholder, the Québec
government, exceeds $4 billion.